EDELMAN TRUST BAROMETER 2014MALAYSIA RESULTS

13 February 2014

2

GLOBAL

ONLINE SURVEY IN 27 COUNTRIES

• 33,000 respondents• 6 years in 20+

markets • 9 years in 10+

markets GENERAL POPULATION

• 1000 respondents per country surveyed

• Ages 18+• 3 years in 25+

markets

INFORMED PUBLICS

• 200 respondents in Malaysia & 25 countries, 500 respondents in U.S. and China

• Ages 25-64• College-educated• In top 25% of household

income per age group in each country

• Report significant media consumption and engagement in business news and public policy

• 14 years of data

EDELMAN’S 14TH annual survey

Indicates Global Data

Indicates Malaysia Data

GLOBAL 54UAE 79China 79Singapore 73Indonesia 72India 69Malaysia 65Canada 60Netherlands 60Mexico 59Hong Kong 59Australia 58Brazil 57Germany 57Argentina 53U.K. 52Sweden 51S. Korea 51S. Africa 50U.S. 49France 46Japan 44Italy 43Turkey 41Spain 39Ireland 39Russia 37Poland 35

GLOBAL 57 China 80 Singapore 76 India 71 Mexico 68 Hong Kong 67 UAE 66 Malaysia 64 Canada 62 Indonesia 62 U.S. 59 Netherlands 59 Brazil 55 Germany 55 France 54 Sweden 54 U.K. 53 Italy 51 Australia 50 Poland 48 S. Korea 47 Ireland 46 Argentina 45 Spain 42 Turkey 42 Japan 41 Russia 36Trust Index is an average of a country’s trust in the four institutions of government, business,

media and NGOs. 20-country global total (does not include Argentina, Hong Kong, Malaysia, Singapore, South Africa, Turkey, UAE).

3

BIG TRUST INCREASES FROM 2013

UAE +13 pts.Indonesia +10

pts.Australia + 8

pts.Argentina + 8

pts.

The Global Trust Index: slight increase in trust over the past year for Malaysia

2013 2014

BIG TRUST DECREASES FROM 2013

Poland -13 pts.U.S. -10 pts.

Mexico -9 pts.

TRUS

TERS

NEUT

RAL

DIST

RUST

ERS

2014TR

USTE

RSNE

UTRA

LDI

STRU

STER

SGLOBAL TRUST DIFFERENCE OF

9 points

MARKETS WITH LARGEST

PERCEPTION GAPS:

UAE (15 pts.) Australia (14

pts.) Germany (13

pts.) France (13

pts.) Sweden (13

pts.)

GLOBAL 47China 67UAE 64Singapore 64Indonesia 62India 61Malaysia 57Canada 54Mexico 53Netherlands 51Hong Kong 50Brazil 49Argentina 49Australia 44Germany 44S. Korea 43U.K. 42S. Africa 42U.S. 42Italy 41Japan 40Turkey 39Sweden 38Spain 36Ireland 35France 33Poland 32Russia 31

Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 27-country global total.

4

Substantially lower trust among general public than informed public

2014GLOBAL 56

UAE 79China 79Singapore 73Indonesia 72India 69Malaysia 65Canada 60Netherlands 60Mexico 59Hong Kong 59Australia 58Brazil 57Germany 57Argentina 53U.K. 52Sweden 51S. Korea 51S. Africa 50U.S. 49France 46Japan 44Italy 43Turkey 41Spain 39Ireland 39Russia 37Poland 35

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics.

NGOS BUSINESS

MEDIA

5

TOTAL TRUST

TRUST A GREAT DEAL

GOVERNMENT

2013 2014

23% 27%

76% 75%

#12013 2014

23% 23%

63%72%

#2

2013 2014

15% 20%

60% 59%

#32013 2014

21% 23%

60% 54%

#4

Trust in business increases, trust in government dropsMalaysia trust in the four institutions: NGOs, Business, Government and Media, 2013 vs. 2014

50%

Trust in government globally, 2013 vs. 2014

6

Significant trust decline for government; largest trust drops in U.S., France and Hong Kong

Q11-14. [GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust) Informed Publics, 20-country global total.

N.A.

LOWER/EQUAL TRUST IN 17 COUNTRIESHIGHER TRUST IN 9 COUNTRIES

2013 2014

= HISTORIC LOW GLOBAL HISTORIC LOW (2009) = 43%

Global

S. Afric

aUAE

Austr

alia Japan

Indone

sia

Argent

inaTur

key Brazil

German

y

S. Kore

aRu

ssia

Spain

Netherl

ands

Swed

en India U.K.

China

Malaysi

a

Cana

da

Singa

pore Ita

lyPol

andIre

landMex

ico U.S. Fra

nce

Hong Kon

g

0.48

0.73

0.43

0.32

0.47

0.19

0.4

0.33

0.480.44

0.29

0.2

0.620.65

0.57

0.47

0.81

0.60.58

0.82

0.35

0.3 0.32

0.41

0.530.49

0.63

44%

17%

88%

56%

45%

53%

23%

43%

34%

49%45%

27%

18%

60% 63%

53%

42%

76%

54%51%

75%

24%19% 21%

28%

37%

32%

45%

2012 2013 201420%

30%

40%

50%

60%

70%

80%

68%

76%75%

47%

60%59%

65% 63%

72%

49%

60%54%

NGOsMedia BusinessGovernment

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (4 Box, Trust) Informed Publics.

Business paves the way in trust for 2014Malaysia trust in the four institutions since 2012

7

50%

Q11-14. [BUSINESS IN GENERAL & GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust) Informed Publics, 20-country global total.

TRUST IN BUSINESS VS. GOVERNMENT

GOVERNMENT

8

BUSINESS

GLOBAL GAP OF 14 PERCENTAGE POINTS BETWEEN TRUST IN BUSINESS AND GOVERNMENT

HIGHER TRUST IN

GOVERNMENTHIGHER TRUST IN BUSINESS

20+ PT. HIGHER TRUST IN BUSINESS

Global

S. Afri

ca

Mexico

Brazil

Argentina

Indonesia

Poland

IndiaIta

lyU.S.

Sp

ain

Irelan

dRussi

a

Malaysi

aU.K.

Canad

a

France

Japan

German

y

Hong Kong

Australi

aChina

Turkey

Singa

pore

Netherla

nds

S. Kore

aUAE

Sweden

58%

63%

73%70%

58%

82%

45%

79%

45%

58%

38% 41%45%

72%

56%

62%

43%

53%

57%

49%

59%

77%

43%

71%

54%

39%

82%

51%

44%

17%

28%

34%

23%

53%

19%

53%

24%

37%

18%21%

27%

54%

42%

51%

32%

45%49%

45%

56%

76%

43%

75%

60%

45%

88%

63%

Malaysia - In 2013 – 3 point diffIn 2012 – 18 point diff

9 Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics.

Big business and publicly-traded companies have trust advantageMalaysians’ trust in different types of businesses

71% 68%63% 62% 61%

54%62% 65%

74%

62%

73%63%

73% 74% 77%69%

80%

59%

Global APAC Malaysia

JAPA

NUNITE

D KINGDOM

GERM

ANYSO

UTH KOREA

SWITZ

ERLA

NDCANADASW

EDEN

FRANCE

UNITED ST

ATES

NETHER

LANDS

ITALY

SPAIN

RUSSIA

BRAZIL

CHINA

MEX

ICO

INDIA

94%91% 89%

86% 85% 84% 83% 83% 81% 79%76%

65%

58%53%

48%45% 44%

10 Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. Use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics.

Malaysians trust companies from developed markets

M O S T T R U S T E DGermany,

Sweden, Canada were among the

top in 2013

2013 vs. 2014

Trust in industries, 2013 vs. 201420142013

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics.

11

Most trusted industry: Technology continues to keep the top position for 3rd consecutive year

TECHNOLOGY

CONSUMER ELECTRONICS MANUFACTURING

AUTOMOTIVE

TELECOMMUNICATIONS

CONSUMER HEALTH COMPANIES

BANKS

ENERGY

PHARMACEUTICALS

FINANCIAL SERVICES

FOOD AND BEVERAGE

CHEMICALS

CONSUMER PACKAGED GOODS

ENTERTAINMENT

MEDIA

BREWING AND SPIRITS

90%85%

81%79%79%78%77%77%

74%73%

69%68%

62%55%54%

TECHNOLOGYCONSUMER

ELECTRONICS MANUFACTURING

AUTOMOTIVETELECOMMUNI-

CATIONSCONSUMER HEALTH COM-

PANIESBANKS

ENERGY

PHARMACEUTICALSFINANCIAL SERVICES

FOOD AND BEV-ERAGECHEMICALSCONSUMER PACKAGED

GOODSENTERTAINMENT

MEDIABREWING AND

SPIRITS

85%86%

79%81%

75%82%81%

74%76%78%

75%76%

71%66%

56%

+5-1+2-2+4-4-4+3-2-5-6-8-9

-11-2

Q61A-64A. [SPLIT SAMPLE] Now thinking about specific sectors within the [TYPE OF INDUSTRY], please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. [RANDOMIZE. SELECT ONE RESPONSE] (Top 4 Box, Trust) General Publics.

FINANCIAL SERVICES INDUSTRY

FOOD & BEVERAGE INDUSTRY

ENERGY INDUSTRY

Trust in industry v/s sector: Banks enjoy high level of trust

12

Malaysians’ trust in industry sectors

Insurance

Credit cards / Payments

Financial advisory / Asset management

Financial services industry overall

Banks

65%

65%

69%

69%

80%

Fast food restaurants

Food and beverage manufacturers

Food service

Food and beverage retailers

Food Industry overall

65%

66%

69%

69%

69%

Mining

Oil

Energy industry overall

Utilities

Natural Gas

Renewables

63%

68%

69%

70%

70%

73%

2013 vs.2014

Credibility of spokespeople , 2013 vs. 2014

20142013

Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) Informed Publics.

13

Technical and academic experts still considered most credible spokesperson

GOVERNMENT OFFICIAL OR REGULATOR

REGULAR EMPLOYEE

BOARD OF DIRECTORS

NGO REP-RESENTA-

TIVE

CEO

A PERSON LIKE YOURSELF

FINANCIAL OR INDUSTRY ANALYST

ACADEMIC OR EXPERT

TECHNICAL EXPERT IN THE

COMPANY

38%

39%

47%

52%

54%

57%

61%

69%

72%

GOVERNMENT OFFICIAL OR REGULATOR

REGULAR EMPLOYEE

BOARD OF DIRECTORS

NGO REPRE-SENTATIVE

CEO

A PERSON LIKE YOURSELF

FINANCIAL OR INDUSTRY AN-

ALYST

ACADEMIC OR EXPERT

TECHNICAL EXPERT IN THE

COMPANY

48%

43%

53%

54%

55%

69%

63%

71%

73% -1-2-2-12-1-2-6-4-10

ONLINE SEARCH ENGINES

TRADITIONAL MEDIA

HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA

65% 65%

54%47% 45%

72% 73%65%

57% 54%

79%

64% 62%57% 54%

61%56% 59% 58%

Global APAC Malaysia

70%

Q178-182. [TRACKING] When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal”. (Top 4 Box, Trust) Informed Publics.

Malaysia trust in different sources of information

14

A powerful combination: Search and traditional

FIRST SOURCE TO TURN TO FOR BREAKING NEWS ABOUT

BUSINESS

SOURCE USED TO CONFIRM/VALIDATE

INFORMATION BREAKING NEWS ABOUT BUSINESS

Online search Television Newspapers

36%20% 19%

Online search Television Newspapers

28% 25% 20%

FIRST SOURCE TO TURN TO FOR GENERAL BUSINESS

INFORMATION

Online search Newspapers Television

30% 26% 21%

Q178-182. [TRACKING] When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal”. (Top 4 Box, Trust) Informed Publics, 27-country global totalQ183. On a typical day, what is the first source that you go to for general information about business? ; Q184. What is the first source you go to for breaking news about business? ; Q185. Which of the following sources do you turn to MOST often to confirm/ validate information on breaking news about business? Informed Publics, 27-country global total15

Levels of trust in sources of information

The Power of Search

Online search Television Newspapers

50%

13%19%

Online search Television Newspapers

38% 14%16%

Online search Newspapers Television

41%22% 10%

FIRST SOURCE TO TURN TO FOR GENERAL BUSINESS

INFORMATION

FIRST SOURCE TO TURN TO FOR BREAKING NEWS ABOUT

BUSINESS

SOURCE USED TO CONFIRM/VALIDATE

INFORMATION BREAKING NEWS ABOUT BUSINESS

Informed public calls for increased government regulation in business by nearly a two-to-one margin, significantly more pronounced among specific sectors

16

Government regulation of business and sectors

Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q262. When it comes to government regulation of the financial services industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics.

47% 51%

65%56%

26%

12% 9% 12%

Not Enough Too Much

33%

20% 20%17%

5% 4%1%

Malaysians expect government to protect consumers from irresponsible business practices and maintain competition in industry

17

Most important role for government in business

Q149. [TRACKING] Which of the following is the most important role that government should play in business? Informed Publics.

35% 29% 26% 30%33% 34% 26% 27%

GOVERNMENT LEADERS

18

BUSINESS LEADERS

Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following?; Q144B-147B. [SPLIT SAMPLE] How much do you trust government leaders to do the following? (Top Box, Trust a great deal) General Publics.

Marginal change in trust among business leaders

2013 2014

2013 2014

25% 28%21%

27%21% 21% 18%

25%

19

Edelman Trust Barometer research reveals 16 specific attributes that build trust.

These can be grouped into

five performance clusters ,listed here in order of importance.

16 Key attributes to building trust

DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP

RANKS ON A GLOBAL LIST OF TOP COMPANIES

OPERATIONS

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS

CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY

PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS

PURPOSEIS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

PRODUCTS & SERVICES

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS

HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

HAS ETHICAL BUSINESS PRACTICESINTEGRITYCOMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

TREATS EMPLOYEES WELLPLACES CUSTOMERS AHEAD OF PROFITS

ENGAGEMENT

-18

-18

-15

-18

-15

-17

-17

-13

-14

-12

-13

-9

-11

-9

-8

-10PARTNERS WITH THIRD PARTIES

TOP GLOBAL COMPANY

ADMIRED TOP LEADERSHIP

CONSISTENT FINANCIAL RETURNS

INNOVATOR

ADDRESSES SOCIETY'S NEEDS

POSITIVELY IMPACTS COMMUNITY

PROTECTS ENVIRONMENT

LOOKS AFTER EMPLOYEES

ACTS RESPONSIBLY IN CRISIS

CUSTOMERS BEFORE PROFITS

COMMUNICATES OFTEN

TRANSPARENT & OPEN

LISTENS TO CUSTOMERS

IS ETHICAL

HIGH QUALITY PRODUCTS

32%

34%

35%

36%

38%

35%

36%

37%

40%

37%

37%

39%

38%

42%

40%

41%

42%

42%

44%

47%

47%

48%

48%

51%

53%

54%

54%

54%

56%

57%

58%

59%

Q80-Q95. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/Extremely Important) Informed Publics, 27-country global total.; Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performing Extremely Well) Informed Publics.

Business importance vs. business performance on 16 trust drivers Gap

20

IMPORTANCEPERFORMANCE

P&S, Engagement, and Integrity: Priority areas for companies to build trust

INTEGRITY

PURPOSEOPERATIONS

PRODUCTS & SERVICES

ENGAGEMENT

86% 85% 84% 83% 80%

66%

What CEOs should do to build trust

21

Actions a CEO can take to build trust in themselves and their company

Q254A-261A. [SPLIT SAMPLE ] Thinking about the following actions a CEO can take, how important is each of the following to building your TRUST in that CEO? (Top 4 Box, Total Important) Informed Publics.

The path forward

22

Globally 84% believe a company can take specific actions that both increase profits and improve the economic and social conditions in the communities where it operates.

Operations and CSR programs are now prerequisites. Business must focus on Engagement and Integrity to build trust.

CEO must become Chief Engagement Officer

With the increased trust, Businesses must now lead the debate for change.

People trust business to innovate, unite and deliver across borders in a way that government can’t. This trust comes with the expectation and responsibility to maintain it.

We need to evolve…

MacroMicro

Shared Value(s)Transactional

Societal ExpectationsLegal Requirements

How and WhyWhat

to includeFrom only

23

24

Diamond of Influence: Inclusive Management

Business to lead the Debate for Change

25

EvaluateEstablish transparent metrics. Report frequently. Acknowledge performance and amend as needed.

AdvocateOffer a clearly articulated strategy that delivers context. Engage and enable to amplify. Create mass movement.

Participate Partner, listen and build relationships to inform strategy.